The Registered Education Savings Plan (RESP) is a tax-sheltered plan that can help you save for your child's post-secondary education. Not only can you grow your savings tax-free, but the government will add from 20 % to 40 % each year to your savings with education grants like the Canadian Education Savings Grant (CESG).
If parents, grandparents and relatives contribute to a family RESP, the funds can be transferred to another child in the same family.
$50,000 per beneficiary over the lifetime of the plan
Maximum annual CESG amount: $500, or 20% of the first $2,500 contributed
Unused grants can be carried forward (for years dating back to 1998, if the child was born) at a rate of one per year, up to a total of $1,000 in grants per year.
Meet with an advisor who can help you achieve your savings goals.
Types of plans
||One beneficiary, does not need to be related to the subscriber
||One or more beneficiaries, related to the subscriber by blood or adoption
||No age limit
||Beneficiaries must be under 31 years old
|Distribution between beneficiaries
||Contributions, withdrawals and financial aid are paid to a single beneficiary
||Contributions are distributed between beneficiaries by the subscriber
|If the beneficiary decides not to pursue their studies
||A new beneficiary can be designated
||Other beneficiaries can use the contributions
The beneficiary receives Educational Assistance Payments (EAPs) based on the subscriber's instructions.1 The maximum amount of EAPs that can be paid before end of the first term of full-time studies (usually a period of 13 consecutive weeks) is $5,000.2 For part-time studies, the amount is $2,500. After that time, if the beneficiary needs to cash in all of the investment income and grants during the same year to cover tuition and expenses, the full amount can be withdrawn.
If the beneficiary does not pursue postsecondary studies and no other beneficiary is named, grants will be returned to the government and contributions will be refunded to the subscriber. The subscriber may also receive the investment income generated by the RESP in the form of Accumulated Income Payments if certain conditions are met.
Certain other provinces, including Saskatchewan and British Columbia, offer additional grants.
The beneficiary of an RESP is an individual to whom or for whom the promoter agrees to make Educational Assistance Payments if that person is entitled to receive them at the time of payment.
An RESP can be opened by an individual and/or his or her spouse, Subscribers need to provide a valid social insurance number for themselves and all beneficiaries.
Unused grant room from previous years can be carried forward at a rate of one per year.